Use the Attached Balance Sheet and Cash Flow Statement of CVS Pharmacy
In a few sentences please answer:
1.What has notably changed from 2018 to 2019?
2. Use the Statement of Cash Flow to explain changes in the
Balance sheet. Review this statement, and explain the
change in the cash account.
Consolidated Balance Sheets At December 31, 2019 2018 $ In millions, except per share amounts Assets: Cash and cash equivalents Investments Accounts receivable, net Inventories Other current assets Total current assets Long-term investments Property and equipment, net Operating lease right-of-use assets Goodwill Intangible assets, net Separate accounts assets Other assets Total assets 5,683 $ 2,373 19,617 17,516 5,113 50,302 17,314 12,044 20,860 79,749 33,121 4,459 4,600 222,449 $ 4,059 2,522 17,631 16,450 4,581 45,243 15,732 11,349 78,678 36,524 3,884 5,046 196,456 $ $ 10,492 $ 13,601 6,879 2,991 12,133 1,830 1,596 8,925 11,365 6,147 2,939 10,711 1,937 Liabilities: Accounts payable Pharmacy claims and discounts payable Health care costs payable Policyholders' funds Accrued expenses Other insurance liabilities Current portion of operating lease liabilities Short-term debt Current portion of long-term debt Total current liabilities Long-term operating lease liabilities Long-term debt Deferred income taxes Separate accounts liabilities Other long-term insurance liabilities Other long-term liabilities Total liabilities Commitments and contingencies (Note 16) 720 1,265 44,009 3,781 53,303 18,926 64,699 7,294 4,459 7,436 71,444 7,677 3,884 8,119 2,780 137,913 2,162 158,279 Shareholders' equiry: Preferred stock, par value $0.01: 0.1 shares authorized; none issued or outstanding Common stock, par value $0.01: 3,200 shares authorized; 1,727 shares issued and 1,302 shares outstanding at December 31, 2019 and 1,720 shares issued and 1,295 shares outstanding at December 31, 2018 and capital surplus Treasury stock, at cost: 425 shares at both December 31, 2019 and 2018 Retained earnings Accumulated other comprehensive income Total CVS Health shareholders' equity Noncontrolling interests Total shareholders' equity Total liabilities and shareholders' equity 45,972 (28,235) 45,108 1,019 63,864 306 64,170 222,449 $ 45,440 (28,228) 40,911 102 58,225 318 58,543 196,456 $ See accompanying notes to consolidated financial statements. 93 Consolidated Statements of Cash Flows For the Years Ended December 31, 2019 2018 2017 $ 248,393 5 186,519 $ 176,594 In millions Cash flows from operating activities: Cash receipts from customers Cash paid for inventory and prescriptions dispensed by retail network pharmacies Insurance benefits paid Cash paid to other suppliers and employees Interest and investment income received Interest paid Income taxes paid Net cash provided by operating activities (149,655) (52,242) (28,932) 955 (2,954) (2,717) 12.848 (148,981) (6,897) (17,234) 644 (2,803) (2,383) 8,865 (146,469) (2,810) (15,348) 21 (1,072) (2,909) 8,007 Cash flows from investing activities: Proceeds from sales and maturities of investments Purchases of investments Purchases of property and equipment Proceeds from sale-leaseback transactions Acquisitions (net of cash acquired) Proceeds from sale of subsidiary and other assets Other Net cash used in investing activities 7,049 (7,534) (2,457) 5 817 (692) (2,037) 61 (137) (1,918) 265 (1,181) (42,226) 832 21 (43,285) 42 33 (2,877) (3,339) (598) (720) 3,736 (8,336) (25) (556) 44,343 (5,522) 446 Cash flows from financing activities: Net repayments of short-term debt Proceeds from issuance of long-term debt Repayments of long-term debt Derivative settlements Repurchase of common stock Dividends paid Proceeds from exercise of stock options Payments for taxes related to net share settlement of equity awards Other Net cash provided by (used in) financing activities Effect of exchange rate changes on cash, cash equivalents and restricted cash Net increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at the beginning of the period Cash, cash equivalents and restricted cash at the end of the period (2,603) 210 (112) (2,038) 242 (97) (4,361) (2,049) 329 (71) (7,850) 36,819 1,659 4,295 5,954 5 2,395 1,900 4,295 $ (6,751) 1 (1,620) 3,520 1,900 $ Consolidated Balance Sheets At December 31, 2019 2018 $ In millions, except per share amounts Assets: Cash and cash equivalents Investments Accounts receivable, net Inventories Other current assets Total current assets Long-term investments Property and equipment, net Operating lease right-of-use assets Goodwill Intangible assets, net Separate accounts assets Other assets Total assets 5,683 $ 2,373 19,617 17,516 5,113 50,302 17,314 12,044 20,860 79,749 33,121 4,459 4,600 222,449 $ 4,059 2,522 17,631 16,450 4,581 45,243 15,732 11,349 78,678 36,524 3,884 5,046 196,456 $ $ 10,492 $ 13,601 6,879 2,991 12,133 1,830 1,596 8,925 11,365 6,147 2,939 10,711 1,937 Liabilities: Accounts payable Pharmacy claims and discounts payable Health care costs payable Policyholders' funds Accrued expenses Other insurance liabilities Current portion of operating lease liabilities Short-term debt Current portion of long-term debt Total current liabilities Long-term operating lease liabilities Long-term debt Deferred income taxes Separate accounts liabilities Other long-term insurance liabilities Other long-term liabilities Total liabilities Commitments and contingencies (Note 16) 720 1,265 44,009 3,781 53,303 18,926 64,699 7,294 4,459 7,436 71,444 7,677 3,884 8,119 2,780 137,913 2,162 158,279 Shareholders' equiry: Preferred stock, par value $0.01: 0.1 shares authorized; none issued or outstanding Common stock, par value $0.01: 3,200 shares authorized; 1,727 shares issued and 1,302 shares outstanding at December 31, 2019 and 1,720 shares issued and 1,295 shares outstanding at December 31, 2018 and capital surplus Treasury stock, at cost: 425 shares at both December 31, 2019 and 2018 Retained earnings Accumulated other comprehensive income Total CVS Health shareholders' equity Noncontrolling interests Total shareholders' equity Total liabilities and shareholders' equity 45,972 (28,235) 45,108 1,019 63,864 306 64,170 222,449 $ 45,440 (28,228) 40,911 102 58,225 318 58,543 196,456 $ See accompanying notes to consolidated financial statements. 93 Consolidated Statements of Cash Flows For the Years Ended December 31, 2019 2018 2017 $ 248,393 5 186,519 $ 176,594 In millions Cash flows from operating activities: Cash receipts from customers Cash paid for inventory and prescriptions dispensed by retail network pharmacies Insurance benefits paid Cash paid to other suppliers and employees Interest and investment income received Interest paid Income taxes paid Net cash provided by operating activities (149,655) (52,242) (28,932) 955 (2,954) (2,717) 12.848 (148,981) (6,897) (17,234) 644 (2,803) (2,383) 8,865 (146,469) (2,810) (15,348) 21 (1,072) (2,909) 8,007 Cash flows from investing activities: Proceeds from sales and maturities of investments Purchases of investments Purchases of property and equipment Proceeds from sale-leaseback transactions Acquisitions (net of cash acquired) Proceeds from sale of subsidiary and other assets Other Net cash used in investing activities 7,049 (7,534) (2,457) 5 817 (692) (2,037) 61 (137) (1,918) 265 (1,181) (42,226) 832 21 (43,285) 42 33 (2,877) (3,339) (598) (720) 3,736 (8,336) (25) (556) 44,343 (5,522) 446 Cash flows from financing activities: Net repayments of short-term debt Proceeds from issuance of long-term debt Repayments of long-term debt Derivative settlements Repurchase of common stock Dividends paid Proceeds from exercise of stock options Payments for taxes related to net share settlement of equity awards Other Net cash provided by (used in) financing activities Effect of exchange rate changes on cash, cash equivalents and restricted cash Net increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at the beginning of the period Cash, cash equivalents and restricted cash at the end of the period (2,603) 210 (112) (2,038) 242 (97) (4,361) (2,049) 329 (71) (7,850) 36,819 1,659 4,295 5,954 5 2,395 1,900 4,295 $ (6,751) 1 (1,620) 3,520 1,900 $
